Before you dive into complex strategies or even simple concepts like index funds, it’s crucial to understand the game you’re playing. , really? At its core, it's about owning a piece of a business. To make sense of the noise surrounding , let's borrow a simple story, a version of a parable once told by Warren Buffett.
We’ve covered a lot of ground on the journey to getting your finances in order, especially for those of us navigating this in our 20s and 30s. Now, as we bring it all together, let's focus on the most important part: turning knowledge into a real-world plan. After all, financial literacy is only powerful when you use it.
Building real wealth, especially when you’re in your 20s and 30s, is less about a secret formula and more about your mindset. The entire journey of personal finance is built on a foundation of how you think about money. It’s about understanding the psychology behind wealth, building solid habits, learning from the right people, and connecting with others who can help you grow.
Your twenties and thirties are a whirlwind of major life changes. These years are packed with milestones that can shape your financial future, from getting married and starting a family to climbing the career ladder. To make sure these events build a strong foundation for your long-term goals, it's crucial to approach them with a clear financial plan. Let’s walk through how to handle the money side of these big moments, including how to prepare for the unexpected bumps along the way.
It might sound strange, but you're never too young to start thinking about retirement. The power of compounding is so effective that if you start in your twenties, you can build a significant nest egg with surprisingly little effort by the time you’re in your sixties. All it takes is a basic grasp of retirement plans and the decision to start now. The sooner you begin, the less you'll have to put away, all thanks to compounding and a long time horizon. You can’t count on Social Security to be your only source of income, but thankfully, there are plenty of other options out there.
Feeling like you’re in over your head with debt is an overwhelming and isolating experience. You might be losing sleep, worried about how you’ll ever get out from under the weight of it all. The good news is you’re not alone, and with a solid plan, you can regain control. This is especially true when you're focused on goals like , as financial stress can derail your progress. Strong and entrepreneurs starts with tackling existing debt.
Every successful company has a plan with clear short- and long-term goals. If you want to achieve financial success, especially when you're , you need one, too. The first step is figuring out where you stand financially today. From there, you can decide what you want for your future and map out exactly how you'll get there.
After spending my career in behavioral finance, I’ve learned that how I invest my own money is either incredibly straightforward or deeply complex, depending on how you look at it. But my entire approach starts with a single idea: money is always a servant, never a master. For anyone wondering , I believe the first step is to ask a more fundamental question: why are you even saving in the first place?
I’m a dividend income investor—personally and professionally. It’s a simple philosophy: what I buy for my clients, I buy for myself. My approach to is built entirely around this principle. Now, I’ll admit I have a rogue position in Facebook that I picked up back in 2012 and maybe a few shares of Twitter from 2015 after hearing a compelling case from Bill Miller. But that’s where my dalliance with growth stocks ends.